Suppose we want to check out different assumptions for the unit
volume, sales price and cost changes. We can do this via the Scenario
Manager.

From the Tools menu, select Scenarios.

Then click Add.

In this section we:

Give the scenario a name

Indicate the range of cells being changed- in this case, the
cells where we keep the change in assumptions

Insert any comments

We could also add protection, which we pass on for now in order
to show you how to also edit and add more scenarios.

Click OK when done

Click OK once again. Now we see the listing of our
scenarios.

To add another scenario, here is a shortcut, which is why we let
the protection be unchecked. Click Close on the Scenario Manager dialog
box.

Then in the worksheet, add the new values in the assumption
cells.

Then follow the same steps above to start the new scenario.

Click OK to verify the values.

Then click OK. You then see two scenarios listed.

We then continue and add a third scenario. This time we
will do it the alternate way. Click Add.

Click OK. Now we have to adjust the values manually.

Now we have our 3 scenarios. Time to generate some output.

Click Summary

You get two choices, either as a report or a pivot table.
Check out the report.

Here is one tip. We created names for the Changing Cells
(assumptions) and Result Cells so that the names appeared in this report.
Otherwise, it will just give the cell references, which might not be as
meaningful.

Note it also doubles up by showing the current values which is
also a scenario. Hide that column like we have here.

Alternatively, here is the pivot table view after we have
reformatted it.

Each view has its place. Generally we like the summary
form.

A couple comments on scenarios:

The calculations all have to reside in one sheet. To do it
across multiple sheets, you would need to develop a macro under the VBA code- an
advanced topic.

Another limit is the number of calculations being handled, 32.
Two workarounds are either splitting up the scenario calculations, such as one
for each product or year, so the number of calculations for each is under 32 or
to use the macros.

The Scenario Manager allows you to use more than two variables.
It also produces a nice summary report or pivot table. This is a great
tool to use.